Japan Nominates New Central Bank Chief

TOKYO — The Japanese government on Thursday nominated Haruhiko Kuroda, a proponent of more aggressive stimulus for the ailing Japanese economy, to lead the country’s central bank.

The nomination of Mr. Kuroda, who is head of the Asian Development Bank and whose views on bolstering the economy echo those of Prime Minster Shinzo Abe, had been widely expected.

If confirmed by Parliament, Mr. Kuroda will succeed the current governor of the Bank of Japan, Masaaki Shirakawa, who is stepping down on March 19. Also nominated Thursday as deputy governors were were Kikuo Iwata, an economics professor at Gakushuin University, and Hiroshi Nakaso, an executive director at the central bank, according to a government statement submitted to the upper house of Parliament.

“The nominees announced today will lead the charge in the bold financial policies that Prime Minister Abe aims for, and his economic growth strategy that has now been dubbed ‘Abenomics,’ ” Yoshihide Suga, Japan's top government spokesman, said at a news conference.

Mr. Kuroda, 68, has publicly said the Bank of Japan has not gone far enough to resuscitate Japan’s stagnating economy by fight deflation, the across-the-board decline in prices that has eroded profits, incomes and investment for years.

Mr. Kuroda’s views are closely in line with those of Mr. Abe, who took office after a landslide victory by his party in elections last December. Mr. Abe argues that to propel economic growth, Japan must pursue more aggressive monetary easing, ramp up government stimulus spending and push ahead with economic reforms, including entry into free trade agreements, a controversial move.

“The onus is on this generation to rebuild and strengthen Japan’s economy to convince younger generations that their future is bright. We will do this by launching three powerful arrows: a bold monetary policy, a flexible fiscal policy and a growth strategy that stimulates private investment,” Mr. Abe said in a televised address to Parliament.

“To compete in an ever more competitive global economy, Japan cannot stick with its current ways. Japan’s economic growth depends on our will and courage to venture out into the rough seas that is global competition,” he added.

Years of near-zero interest rates and asset-purchase programs by the Bank of Japan have so far done little to reverse deflation. Mr. Kuroda is widely expected to expected to ramp up purchases of government debt and other assets to pump more money into the economy and to meet a 2 percent inflation target the Bank of Japan adopted in January, under pressure from the government.

It is clear that the new Bank of Japan stewardship “will pursue easier policy far more aggressively,” Tom Kenney, an analyst at ANZ Bank, said in a research note on Thursday. “This will primarily be achieved by a step up in the central bank’s Q.E. program,” he added.

Finance Minister Taro Aso said Japan could provide a model for other industrialized nations struggling to kick-start growth in their stagnating economies.

“Japan will become a pioneer by beating deflation,” Mr. Aso told Parliament. “We will show the world the way forward toward a solution.”

The country’s benchmark Nikkei average closed up 2.71 percent at 11,559.36 on Thursday after the announcement, while the broader Topix index gained 2.30 percent to 975.66.